If you’re struggling to pay your bills, you might be considering a payday loan, but watch out!
Even with some recent reforms, many of these loans still come with high fees and very high interest rates. The good news is that there are alternatives, and as Consumer Reports explains, you just have to know where to look.
The pandemic has really exacerbated issues with payday lenders, especially for low-income people and black communities. As a result, there has been pressure to provide them with better and fairer banking services.
What can you do now if you need emergency cash fast? First look for a community development financial institution near you. They are financial service providers, such as banks or credit unions, whose mission is to bring financial services to low-income communities, places that many traditional banks have largely excluded.
Joining a CDFI can be affordable. They offer free or low-cost banking services, with an initial deposit as low as $25.
Another avenue that loan seekers can take is to find a nonprofit organization with a payment relief program. For example, Exodus Lending is a nonprofit organization dedicated to helping people get out of payday loan debt. These groups consolidate your loans at no cost and with 0.0% interest.
If you do end up going to a payday lender, it’s important that you know the laws in your state. If you have questions or issues with a lender, you can learn more at the California Attorney General’s website. here.